Bitcoin has been trading in a choppy price zone since breaking down from its 2019 high in June, but two recent developments should make us optimistic about its long-term future.
There is speculation abound over how Bitcoin will close out the final year of the decade. Its next halving is still a few months away, tentatively scheduled to happen in May. In preparation, many traders are expecting a steady uptrend preceding it. However, the market is still feeling out a local bottom in the meantime.
Despite Bitcoin’s severe downward trend in the past few days, holders should pay attention to the long game. Here are two reasons why you should ignore Bitcoin’s current price dip.
Peter Thiel Just Invested $50M in Bitcoin Mining
If you haven’t heard, the Bitcoin mining industry recently got an unexpected boost from a prominent American investor. Peter Thiel, the co-founder of PayPal and early investor in Facebook, has put some $50M towards a Texan mining startup. The move is unprecedented and may signal the start of real competition with China’s control over mining.
The startup, called Layer1, will utilize new technology for cooling the chips used for mining. It will host these facilities in the ‘middle of nowhere,’ 150 miles west of Midland, Texas.
The move by Thiel is one of the most high-profile investments in Bitcoin mining we’ve seen in a long time. In all, it proves that this sector of the cryptocurrency world will start to experience fierce competition in the coming years — and that’s also good for Bitcoin.
Fidelity Rolls Out Crypto-Custody Services
Fidelity’s growing involvement in the cryptocurrency world has largely flown under the radar, but market analysts would be smart to follow its developments.
The fifth-largest asset management firm in the United States, with $2.8T under its wing, is looking to now offer crypto-custody services. First launching it in the fall of 2018 in a limited capacity, it will be fully rolled out this year. Currently, the asset management firm does not offer cryptocurrency trading to the public, but it’s likely this might be its next major move.
Altogether, these two developments indicate that the cryptocurrency industry is picking up some much-needed institutional investment and support. If you connect the dots, it’s hard not to remain optimistic for the years moving forward. So, don’t pay attention to the current price — the long game looks stronger than ever for Bitcoin.
Do you think these two stories will have a major impact on the cryptocurrency market in the years to come? Let us know your thoughts below in the comments.
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